Guaranteed Asset Protection (GAP) insurance exists to alleviate the financial burden in the event of a total loss of your vehicle. New cars especially, can depreciate by thousands of pounds within the first year of leaving the dealership. Unless your car is brand new, your comprehensive car insurer will only settle the vehicle’s value at the time of the incident that resulted in a total loss. GAP insurance covers the shortfall between the payout by your comprehensive motor insurer and the original purchase price of the vehicle.
A common misconception is that GAP insurance is expensive, and if you should choose to sell your car, you will lose your GAP insurance policy. With ALA, this is not the case. An average three-year GAP insurance policy could cost just £5 per month, and there is no fee for transferring your policy to a new vehicle, although you may have to pay any difference in premium.
This article will cover ALA’s policy on transferring your GAP policy. You will understand in which circumstances you will be eligible for policy transfer. You might find that ALA’s flexible GAP insurance policies are the right fit for your vehicle.
Suppose your comprehensive car insurance provider settles with a new for old replacement vehicle in the event of a total loss. In this case, your GAP policy can be transferred over to this new vehicle. Bear in mind that you cannot claim GAP insurance under this circumstance. Your GAP policy will usually be valid for the remaining time of your original policy. There are slight variations in ALA’s transfer policy as we use multiple underwriters. We do this to provide each customer with the best value policy for their vehicle.
ALA’s Back to Invoice Plus policy can offer the shortfall in value between the payout by your comprehensive motor insurer and the original cost of your vehicle, or the outstanding finance for the car, in the event of a total loss.
For vehicles bought within the last 60 days
For vehicles bought within 180 or 356 days
Read the Policy Wording for Back to Invoice insurance for
180 days and 365 days.
In the event of a total loss, a successful Vehicle Replacement Plus claim will cover the difference between the payout by your comprehensive motor insurance company and the cost of replacing your vehicle (or the outstanding finance), even if the cost is higher than you originally paid. With this policy, the replacement cost may be the same or lower than you originally paid. Your replacement vehicle must be eligible for a GAP insurance policy transfer.
For vehicles bought within 60 days
For vehicles bought within 90 days
In the event of a total loss, a successful Contract Hire Plus claim will cover up to 100% of the outstanding rental payments for the vehicle and any shortfall in the market value settlement provided by the car insurance provider.
For vehicles leased within 90 days
For vehicles leased within 180 or 365 days
Read the Policy Wording for
180 days and
365 days here.
In the event of a total loss, a successful
Agreed Value GAP Insurance claim will cover the shortfall between the payout by your comprehensive motor insurance provider and the agreed value of the vehicle at the time of insuring (based on the Glass’s Guide retail value).
ALA’s policies allow you to transfer your GAP insurance onto another vehicle in a multitude of circumstances which many other GAP insurance providers do not offer.
We also offer policy transfers at no extra cost, so there is no need to worry about admin or transfer fees. Your policy premium may need to be adjusted, and you will only be required to pay the difference in premium.
Our affordable premiums give you peace of mind over the possibility of a total loss of your vehicle, and the options for policy transfer mean that you will not be left out of pocket.
If you need to transfer your GAP insurance policy, contact ALA on 01653 916304 within 30 days of receiving a replacement vehicle or needing a policy transfer.
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